Use the Rouse Exercise Equipment data in Exercises E-F:14-23 and E-F:14-24. Rouse plans to purchase a truck for $23,000 and a forklift for $125,000 next year. In addition, it plans to pay cash dividends of $3,500. Assuming Rouse plans similar activity for 2025, what would be the amount of free cash flow?

Data from Exercises E-F:14-23

Rouse Exercise Equipment, Inc. reported the following financial statements for 2024:

Data from E-F: 14-24

Use the Rouse Exercise Equipment data in Exercise E-F:14-23. Prepare the company’s
statement of cash flows—indirect method—for the year ended December 31, 2024.
Assume investments are purchased with cash.

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ROUSE EXERCISE EQUIPMENT, INC. Income Statement Year Ended December 31, 2024 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Depreciation Expense Other Operating Expenses Total Operating Expenses Net Income $ 54,000 210,000 $ 713,000 342,000 371,000 264,000 $ 107,000